Tricorn Group EBITDA surged on 93.3% and Revenue jumped on 19.8%
06 Jun 2018 • About Tricorn Group (
$TCN) • By InTwits
Tricorn Group reported FY2018 financial results today. Here are the key drivers of the company's long term financial model:
- EBITDA Margin is quite volatile: 6.0% in FY2018, 3.7% in FY2017, 2.3% in FY2016, 3.7% in FY2015, 2.7% in FY2014
- Tricorn Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 4.1%
- CAPEX is quite volatile: £0m in FY2018, £0m in FY2017, £0m in FY2016, £0m in FY2015, £0m in FY2014
- The company has potentially unprofitable business model: ROIC is 6.1%
- It operates with medium-size leverage: Net Debt/EBITDA is 2.3x while industry average is -8.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Tricorn Group's Revenue jumped on 19.8%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.1 pp from 5.2% to 6.3% in FY2018.
Gross Margin decreased on 2.3 pp from 40.6% to 38.3% in FY2018. SG&A as a % of Revenue decreased on 3.4 pp from 37.9% to 34.5% in FY2018.
Net Income margin increased on 4.5 pp from -1.5% to 3.0% in FY2018. Net Income margin followed a growing trend at 1.6 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 3.1% in FY2018. Tricorn Group's CAPEX/Revenue increased slightly on 1.7 pp from 1.5% in FY2015 to 3.1% in FY2018. It's average CAPEX/Revenue for the last three years was 3.2%. Tricorn Group invested a big chunk of EBITDA (52.7%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (6.1%) and ROE (11.0%). ROIC increased on 6.3 pp from -0.20% to 6.1% in FY2018. ROE surged on 15.6 pp from -4.6% to 11.0% in FY2018. ROE followed a growing trend at 5.2 pp per annum in the last 5 years.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA dropped on 2.9x from 5.1x to 2.3x in FY2018. Debt dropped on 11.2% while cash increased on 7.8%.
Tricorn Group has short term refinancing risk: cash is only 19.6% of short term debt.
Financial and operational results
FY ended 31 Mar 2018
Tricorn Group ($TCN) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 21.222 | 21.186 | 18.016 | 18.519 | 22.180 | 19.8% |
| Gross Profit | 7.652 | 7.634 | 7.264 | 7.517 | 8.495 | 13.0% |
| SG&A | 7.669 | 7.458 | 7.231 | 7.020 | 7.651 | 9.0% |
| EBITDA | 0.583 | 0.777 | 0.408 | 0.683 | 1.320 | 93.3% |
| Net Income | -0.863 | -0.745 | -0.552 | -0.275 | 0.676 | |
Balance Sheet
|
|---|
| Cash | 1.284 | 0.694 | 0.855 | 0.642 | 0.692 | 7.8% |
| Short Term Debt | 4.511 | 3.808 | 3.677 | 4.013 | 3.522 | -12.2% |
| Long Term Debt | 0.159 | 0.011 | 0.098 | 0.126 | 0.152 | 20.6% |
Cash flow
|
|---|
| Capex | 0.692 | 0.312 | 0.629 | 0.559 | 0.696 | 24.5% |
Ratios
|
|---|
| Revenue growth | -0.6% | -0.2% | -15.0% | 2.8% | 19.8% | |
| EBITDA growth | -73.5% | 33.3% | -47.5% | 67.4% | 93.3% | |
|
|---|
| Gross Margin | 36.1% | 36.0% | 40.3% | 40.6% | 38.3% | -2.3% |
| EBITDA Margin | 2.7% | 3.7% | 2.3% | 3.7% | 6.0% | 2.3% |
| SG&A, % of revenue | 36.1% | 35.2% | 40.1% | 37.9% | 34.5% | -3.4% |
| Net Income Margin | -4.1% | -3.5% | -3.1% | -1.5% | 3.0% | 4.5% |
| CAPEX, % of revenue | 3.3% | 1.5% | 3.5% | 3.0% | 3.1% | 0.1% |
|
|---|
| ROIC | -1.2% | 0.4% | -4.4% | -0.2% | 6.1% | 6.3% |
| ROE | -11.7% | -11.2% | -8.9% | -4.6% | 11.0% | 15.6% |
| Net Debt/EBITDA | 5.8x | 4.0x | 7.2x | 5.1x | 2.3x | -2.9x |
Peers in Industrial Engineering
Below you can find Tricorn Group benchmarking vs. other companies in Industrial Engineering industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Flowtech Fluidpower ($FLO) | 17.7% | 18.7% | 19.9% | 45.6% | |
| Corac Group ($CRA) | 12.2% | -5.7% | 3.8% | 38.8% | |
| 600 Group ($SIXH) | -0.2% | 5.0% | 3.4% | 29.9% | |
| Molins ($MLIN) | -16.9% | -0.5% | -52.3% | 28.7% | |
| Mincon Group ($MCON) | 4.2% | 28.8% | 8.4% | 27.8% | |
| |
|---|
| Median (20 companies) | 5.0% | 5.0% | 4.0% | 8.4% | 10.9% |
|---|
| Tricorn Group ($TCN) | | -0.2% | -15.0% | 2.8% | 19.8% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 54.0% | 55.8% | 56.8% | 56.9% | |
| Rotork ($76ID) | 48.0% | 45.7% | 44.3% | 44.2% | |
| Amiad Water Systems Ltd ($AFS) | 38.9% | 40.5% | 39.3% | 39.5% | |
| Mincon Group ($MCON) | 43.2% | 40.2% | 40.1% | 36.5% | |
| Northbridge Industrial Services ($NBI) | 48.4% | 43.4% | 38.4% | 36.4% | |
| |
|---|
| Median (17 companies) | 30.2% | 32.9% | 30.5% | 32.2% | 26.7% |
|---|
| Tricorn Group ($TCN) | 36.1% | 36.0% | 40.3% | 40.6% | 38.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 27.4% | 28.2% | 30.1% | 32.2% | |
| Rotork ($76ID) | 28.0% | 25.0% | 22.8% | 19.9% | |
| Ab Dynamics ($ABDP) | 20.1% | 24.0% | 22.7% | 19.0% | |
| Mincon Group ($MCON) | 22.7% | 17.6% | 16.4% | 14.3% | |
| Northbridge Industrial Services ($NBI) | 32.4% | 32.5% | 9.1% | 14.1% | |
| |
|---|
| Median (19 companies) | 7.5% | 8.2% | 8.0% | 10.0% | 7.8% |
|---|
| Tricorn Group ($TCN) | 2.7% | 3.7% | 2.3% | 3.7% | 6.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Ab Dynamics ($ABDP) | 2.5% | 4.2% | 7.9% | 32.7% | |
| Chamberlin ($CMH) | 2.6% | 3.1% | 4.2% | 11.6% | 7.9% |
| Ms International ($MSI) | 2.0% | 1.8% | 4.7% | 7.7% | 1.6% |
| Mincon Group ($MCON) | 4.3% | 2.5% | 6.9% | 5.8% | |
| Renold ($RNO) | 3.3% | 2.1% | 4.8% | 4.6% | 4.5% |
| |
|---|
| Median (19 companies) | 2.4% | 2.2% | 3.4% | 2.5% | 4.4% |
|---|
| Tricorn Group ($TCN) | 3.3% | 1.5% | 3.5% | 3.0% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Somero Enterprise Inc ($SOMA) | 51.7% | 54.3% | 51.7% | 55.2% | |
| Renold ($RNO) | -2.5% | 41.3% | 39.1% | 44.7% | 21.3% |
| Ab Dynamics ($ABDP) | 28.4% | 31.4% | 28.0% | 19.3% | |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 11.9% | 7.5% | 10.9% | 17.2% | |
| Rotork ($76ID) | 38.1% | 21.9% | 17.0% | 15.7% | |
| |
|---|
| Median (20 companies) | 11.0% | 9.5% | 7.1% | 7.6% | 12.6% |
|---|
| Tricorn Group ($TCN) | -1.2% | 0.4% | -4.4% | -0.2% | 6.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pressure Technologies ($PRES) | -0.7x | 1.3x | 2.3x | 4.8x | |
| Chamberlin ($CMH) | | 2.2x | 2.2x | 4.3x | 5.8x |
| 600 Group ($SIXH) | 2.2x | 3.1x | | 4.0x | |
| Northbridge Industrial Services ($NBI) | 1.2x | 1.5x | 4.9x | 2.7x | |
| Flowtech Fluidpower ($FLO) | 1.0x | 1.3x | 1.8x | 1.9x | |
| |
|---|
| Median (18 companies) | 0.1x | 0.7x | 1.1x | 0.3x | 0.6x |
|---|
| Tricorn Group ($TCN) | 5.8x | 4.0x | 7.2x | 5.1x | 2.3x |
